Hi Horlic, may I ask for your opinion – I’m a fresh graduate earning about RM3,000/mth. Currently, I’m renting a room at RM450/mth.
I think of owning my first house for own stay instead of continue to rent. But, I dare not go for property more than RM100,000 as I afraid could not afford the heavy commitment thereafter.
Therefore, I plan to go for a second hand low cost flat around RM50,000 in Cheras area, and target to settle the housing loan within 8 to 10 years.
Should I go for second hand low cost apartment or medium cost condo about RM250,000 and serve the loan for 25 to 30 years, please? Thank you very much! From: Chris
If I’m in your shoes, I do not mind to buy low cost flat as my first house for own stay, as long as the living environment is acceptable and feel comfortable to stay there, then why not?
Reasons being are:
- Monthly loan installment for RM50K is much lesser compare to your room’s rental at RM450/month. It helps you to save hundred dollars every month after all.
- Besides, you may rent out other rooms to further reduce your burden. In another word, it saves you more money.
- RM50K compare to RM250K, low entry costs meaning lower risk. Perhaps you may want to spend more time to learn and build your foundation first before going for higher value properties?